Feasibility Study of Packaging Shop Branch Expansion of Duangporn Plastic Company Limited, Muang District, Khon Kaen Province

Abstract

This study aimed to examine the feasibility of branch expansion of the retail packaging shop of Duangporn Plastic Company Limited, Muang
District, Khon Kaen Province. This study employed marketing, technical, managerial, and financial feasibility studies. Marketing feasibility included
examination of internal and external factors, and customer behavior and purchase decisions at Duangporn Plastic shop were studied using a questionnaire. Yamane’s framework was adopted to determine the number of the customers, and to quantify merchant participants, Krejcie and Morgan’s formula was used. Accordingly, 400 customers who purchased goods and 170 merchants who conducted business at the Bang Lamphu Market were selected. The study results supported that 85.8% and 98.3% of Bang Lamphu Market’s customers and merchants, respectively, were interested in buying products from the Duangporn Plastic shop. Results from a PESTEL analysis, the six forces model, the 7Ps Marketing Mix model and a SWOT Analysis showed positive results, supporting the marketing feasibility of expanding the branch. Results also supported the technical feasibility of the branch given the location on the main road provided optimal visibility and
ease access to customers. Moreover, the shop’s products were considered daily-use products subject to repeat orders and modern technologies in the shop supported daily operations. Managerial feasibility was also confirmed: the organization structure was designed with clearly defined responsibilities and potential wages and benefits for each staff position, while opening hours were consistent with customer demand. The initial finance investment was 1,500,000 Baht with a payback period of one year and 9 months, and a net present value (NPV) and internal rate of return (IRR) of 5,466,211.67 Baht and 75.73%, respectively. It can be concluded that the branch expansion of Duangporn Plastic Co., Ltd. was feasible.